Trade Out of Poverty NewsSubscribe to our feed for regular updates on all our exciting projects and the latest news from Trade Out of Poverty.Pascal LamyMinisterial ConferenceUN World Food ProgrammeWTODoha Development Roundintra-African tradeHillary ClintonAfricaGeneralized System of PreferencesUS congressAGOAtradeNGODohaUNSupachai PanitchpakdiUNCTADDavid CameronWorld Economic ForumDAVOSDAVOCDeveloping CountriesIsi SiddiquiDoha roundMichael PunkeDoha Development AgendaSenate Agriculture CommitteeFarm BillCenter for Global DevelopmentJeffrey SachsG20BRICSPutinHerman Van RompuyJose Manuel BarrosoAnnabel Palmerannabel@tradeoutofpoverty.orgb1609cb3-8779-4672-93db-881c2b798f4dhttp://www.tradeoutofpoverty.org/news/2012/10/19/top's-co-chairs-meet-with-shadow-international-development-secretaryannabel@tradeoutofpoverty.orgTOP's Co-Chairs meet with Shadow International Development SecretaryTwo Co-Chairs of Trade Out of Poverty, Hilary Benn and Peter Lilley, had a very positive meeting with the Shadow Secretary of State for International Development, Ivan Lewis on Wednesday to discuss the objectives of Trade Out of Poverty.Fri, 19 Oct 2012 16:33:53 Z<div>Two Co-Chairs of Trade Out of Poverty, Hilary Benn and Peter Lilley, had a very positive meeting with the Shadow Secretary of State for International Development, Ivan Lewis on Wednesday to discuss the objectives of Trade Out of Poverty.&nbsp;<strong>Ivan Lewis said the crucial importance of trade needs to be reflected in the new post-2015 global development framework.</strong>&nbsp; TOP welcomed this and promised to work on how to formulate a Trade Goal for the revised MDGs.&nbsp;</div> <div>&nbsp;</div> <div>The meeting also discussed the planned campaign by a coalition of NGOs for food security and abolition of hunger.&nbsp; We agreed that facilitating trade in agricultural products within and between developing countries is bound to play a crucial part in this.</div>59a56bc3-72de-49ee-9343-d86a91417213http://www.tradeoutofpoverty.org/news/2012/05/09/unctad-criticises-inconsistent-attempts-at-global-financial-reformannabel@tradeoutofpoverty.orgNGODohaUNSupachai PanitchpakdiUNCTADUnctad criticises inconsistent attempts at global financial reformIn the face of attempts to clip its wings, secretary general Supachai Panitchpakdi has defended Unctad's global role
Wed, 09 May 2012 14:03:47 Z<div id="article-body-blocks" sizcache="0" sizset="69"> <p>Efforts to reform international finance are localised and inconsistent with the risk that the world will return to business as usual, a top UN development official has warned.</p> <p>Supachai Panitchpakdi, the secretary general of the UN Conference on Trade and Development (Unctad), said there had been co-ordinated stimulus programmes after the 2008 financial and economic crisis, but governments had too quickly adopted austerity measures.</p> <p>"Individual countries have tried financial reform, like Dodd-Frank [pdf] in the US, but it's all been inconsistent," he said on Friday. "Stimulus was the easy part, because governments spend money, but you cannot go from crisis to austerity without reforms as well."</p> <p>Supachai spoke to the Guardian from Doha, Qatar, where Unctad &ndash; seen as an intellectual counterweight to the International Monetary Fund (IMF) and the World Bank &ndash; begins its quadrennial meeting on Saturday. As in past conferences, Unctad, a frequent critic of IMF neoliberal economic policy, faces pressure from rich countries to clip its sails.</p> <p>Former Unctad staff, NGOs and developing countries have mounted an energetic campaign criticising efforts by developed countries to restrict Unctad's mandate so that it confines its analytical work to trade and investment, keeping its nose out of the global financial markets.</p> <p>"It is always part of deliberations," said Supachai, who was appointed head of Unctad in 2005 having previously been director general of the World Trade Organisation. "We are confronted with this time again and again. At Accra [the last Unctad conference] we came out with a most comprehensive mandate, which allowed us to deal with climate change, for example. We can understand why advanced countries think we might be moving too much into other people's areas."</p> <p>But Supachai said it was unavoidable Unctad should analyse global finance, as it was an intrinsic part of development. Its report in February consisted of a comprehensive critique (pdf) of what Supachai called "finance-driven globalisation", whereby "financial markets and institutions have become the masters rather than the servants of the real economy, distorting trade and investment, heightening levels of inequality, and posing a systemic threat to economic stability".</p> <p>Unctad has long been critical of the Washington consensus, warning back in the 1990s of the perils of premature liberalisation of trade and capital flows, especially for developing economies. Unctad can justly claim that the financial crisis of 2008 &ndash; the most serious economic shock since the Great Depression &ndash; is ample vindication of what it has been saying all along.</p> <p>Supachai is too diplomatic to suggest that rich countries want to limit Unctad's remit on ideological grounds, saying they are acting because of the climate of austerity. But whatever the motivations, NGOs, development experts and developing countries have rallied round the organisation.</p> <p>Civil society groups meeting in Doha have contrasted attempts to strengthen the IMF and the World Bank with efforts to emasculate Unctad.</p> <p>"It is the policies that engendered the ongoing crisis and widespread human suffering that need to be urgently changed, and not organisations such as Unctad that have been working towards alternatives," NGOs said in a statement in Doha.</p> <p>The group of least-developed countries have also declared their support of Unctad. "While placing development at the centre of domestic policy has led to significant policy improvements in some least-developed countries, numerous challenges continue to face the group as a whole," they said. "Overcoming these will require further policy reform, but also effective external assistance and co-operation with international partners, including Unctad."</p> <p>Supachai said he was determined to fight for Unctad's mandate to make sure that developing countries have a voice, and to try to ensure that poor countries do not suffer the consequences of recurring economic crises.</p> <p>As for reforms, Supachai identified as key greater disclosure of information from the likes of hedge funds on the kinds of financial instruments they were trading. Inclusive growth was another priority, as well as innovative financing so that, for example, African countries could meet their pledges to invest 10% of GDP in agriculture.</p> <p>At a time of austerity, Supachai said it was time to move beyond official development assistance from rich countries, which has declined for the first time in 15 years. He argued a financial transactions tax, or Tobin tax, would achieve a dual function, helping to curb the power of international finance while also providing funds for developing countries.</p> <p>"It would not be expensive for the financial services industry," he said. "That argument is an excuse for masters of the universe to remain masters of the universe."</p> </div>5a4a118b-a187-4a99-a2de-149a133f0eechttp://www.tradeoutofpoverty.org/news/2012/05/09/doha-round-nearing-death-says-economistannabel@tradeoutofpoverty.orgDoha roundWTOJeffrey SachsDoha Round nearing death, says economist AFTER years of trying to reach an agreement, world-renowned economist Jeffrey Sachs issued a warning that the Doha Round of negotiations under the World Trade Organization (WTO) may never see completion. Wed, 09 May 2012 13:41:22 Z<div style="text-align: justify;">AFTER years of trying to reach an agreement, a world-renowned economist issued a warning that the Doha Round of negotiations under the World Trade Organization (WTO) may never see completion.&nbsp; In an interview, Columbia University&rsquo;s Earth Institute Director Jeffrey Sachs said lack of leadership in the talks could send the Doha Round to its death.</div> <div style="text-align: justify;"></div> <p>&ldquo;I think the problem is the kind of leadership that&rsquo;s needed for these results really doesn&rsquo;t exist right now. The United States, the European Union, China, Russia, India, all have big governance challenges,&rdquo; Sachs added in an interview at the sidelines of the recently concluded Asian Development Bank (ADB) annual meeting (May 2-5) in Pasay City.</p> <p>&ldquo;I don&rsquo;t think those constraints are compelling in the sense that they really mean that the national interest is to avoid agreement but it does mean that all these politicians are risk-averse, which is too little, and take few risks and go with the status quo. And so that&rsquo;s why this agreement just looks farther than ever from coming right now, or ever,&rdquo; he said.</p> <p>The US right now, according to Sachs,&nbsp; is going through a lot of economic challenges that have &ldquo;paralyzed [it] politically,&rdquo; while the European Union is still reeling from its debt crisis.</p> <p>China, he said, is undergoing a difficult political transition while Russia is trying to cope with protests due to the re-election of Vladimir Putin as president. India, Sachs added, has a &ldquo;complicated coalition government&rdquo; that makes it difficult for the country to deal with change.</p> <p>He said if the Doha Round &ldquo;freezes over,&rdquo; he expects a new agreement to come into view. This new agreement, however, may not be under the WTO and could take on different forms.</p> <p>&ldquo;Maybe something else will be invented to change direction, or to give it a new name or to give it a new impetus or a new focus. I&rsquo;m not part of the negotiations day to day or month to month, but I don&rsquo;t see any prospect of a treaty in the short term given this constellation of weak political actors and lack of global leadership,&rdquo; Sachs, a renowned economist and senior adviser to the United Nations, added.</p> <p>The new agreement, he said, could focus on just world food supply and global agriculture trade or an agreement between poor countries on trade and investment rules.</p> <p>Sachs added that an initiative concentrated&nbsp; on reform of international tax havens or possibly on money laundering is also essential in today&rsquo;s world.</p> <p>He said there could also be a possible initiative that links trade and the environment. The tie-up could be beneficial, especially with the need to focus on sustainable development and inclusive economic growth.</p> <p>&ldquo;I&rsquo;m not predicting it, but if this trade round really freezes up, we have so many global challenges that need problem-solving that you could imagine another initiative coming. Maybe not even within the WTO exactly but around sustainable development, around agriculture, around energy, around the global crisis of tax evasion, &lsquo;hot&rsquo; money, tax havens which are very serious problems where we need a global approach and these would be the kind of agreements that might side-step the existing round,&rdquo; Sachs added.</p> <p>The negotiations for the Doha Round began in 2001, after a ministerial meeting in Doha, Qatar. The Doha Round is of special interest to developing countries, particularly to the Philippines,&nbsp; since its&nbsp; &ldquo;aim is to achieve major reform of the international trading system through the introduction of lower trade barriers and revised trade rules.&rdquo; The round, whose work program covers about 20 areas of trade, is also known semi-officially as the Doha Development Agenda. It was officially launched at the WTO&rsquo;s Fourth Ministerial Conference in Doha in November 2001.</p>8ed9deb4-d815-4637-b018-538db4fa05eahttp://www.tradeoutofpoverty.org/news/2012/04/25/brics-urge-g20-to-push-for-fair-tradeannabel@tradeoutofpoverty.orgG20BRICSBRICS urge G20 to push for fair tradeThe BRICS grouping of Brazil, Russia, India, China and South Africa has called on the G20 to strengthen its coordination and find ways to improve the multilateral trading system in order to address current global economic uncertainties. Wed, 25 Apr 2012 11:55:38 Z<p>The BRICS grouping of Brazil, Russia, India, China and South Africa has called on the G20 to strengthen its coordination and find ways to improve the multilateral trading system in order to address current global economic uncertainties. </p> <p>The call was made at a G20 ministerial meeting in Mexico over the weekend. </p> <p>South African Trade and Industry Minister Rob Davies said the BRICS trade ministers had called upon their fellow G20 trade ministers to identify ways to improve the multilateral trading system. </p> <p>"We have made this call, so that all economies may pursue a sustainable and 'development-friendly' integration in global trade, including adjustment strategies for their industries and workforce, as well as the appropriate social and sectoral policies to respond to existing structural vulnerabilities," Davies said in a statement released on Monday. </p> <p>Conclusion of Doha Round 'vital'</p> <p>The BRICS ministers had re-emphased their commitment to the Doha Development Round, saying the conclusion of the Doha would be a significant step in this direction and urging the G20 to work towards this. </p> <p>According to BRICS ministers, while global value chains were playing an increasing role in trade, many sectors, industries and even countries were not participating in global value chains as fully as others. </p> <p>"In order for global value chains to serve as instruments of growth and development, it would be important to develop a deeper understanding of their developmental impact and the conditions under which they can be used to achieve long term socio-economic gains," Davies said. </p> <p>At the same time, Davies cautioned that obstacles should not be placed in the way of the development and effective functioning of global value chains "for protectionist reasons". </p> <p>"In this context, it would be useful to have a member-driven process, in the WTO, Unctad and other intergovernmental agencies, to examine this issue, including the identification of more accurate statistical methods to assess value addition." </p> <br /> <p>Read more: <a href="http://www.southafrica.info/global/brics/g20-230412.htm#ixzz1t3JHQDxT">http://www.southafrica.info/global/brics/g20-230412.htm#ixzz1t3JHQDxT</a></p>9e46699c-5b55-4f4d-8993-1775e09b0c20http://www.tradeoutofpoverty.org/news/2012/02/15/the-farm-bill-saga-begins-(again)-will-development-be-on-the-stage-in-the-wings-or-out-of-luck-annabel@tradeoutofpoverty.orgDoha Development AgendaSenate Agriculture CommitteeFarm BillCenter for Global DevelopmentThe Farm Bill Saga Begins (Again): Will Development Be on the Stage, in the Wings or Out of Luck?Kimberly Ann Elliot (Center for Global Development) writes on the impact high food prices have on poor consumers in developing countries.Wed, 15 Feb 2012 12:42:34 Z<p>Many in the development research and advocacy communities engaged heavily in the mid-2000s debate over what became the 2008 farm bill and were sorely disappointed with the outcome. At that time, the push for farm bill reform was part of a broader campaign to push the Doha Development Agenda round of international trade negotiations to a successful conclusion, including by sharply reducing the levels of trade-distorting support that rich countries provide to their farmers. Those policies boost the incomes of farmers in rich countries at the expense of farmers in developing countries, who face suppressed global prices and have to compete without the benefit of subsidies. Within weeks of the subsidy-laden farm bill passing, the Doha Round collapsed and it is now effectively, if not officially, dead.</p> <p>Today there is relatively more awareness about the impact of high food prices on poor consumers in developing countries, but rich-country policies are still a concern. Ethanol subsidies are widely faulted for contributing to the upward pressure on prices. Other commodity subsidies add to global price volatility and, when prices eventually go down again, will dampen incentives for developing countries to invest in agriculture.</p> <p>Without the prospect of a multilateral trade deal to encourage farm policy reforms, could the budget pressures Congress is facing push in that direction as they did in the European Union? Maybe, but we can't count on it. Signs so far are that the least globally distorting subsidies, the so-called direct payments, are the most likely to be cut with some savings diverted to more trade-distorting forms.</p> <p>We should get a better idea of where things are headed over the next month as the Senate Agriculture Committee holds a series of hearings on the upcoming farm bill. Based on the line-up, the hearings seem very domestically-focused with proposed topics including energy and economic growth for rural America, strengthening conservation, nutrition and local production, and risk management tools for American farmers. It's not surprising that the focus is on American interests and American farmers, but I hope that the impact of American policies on our trading partners -- developing country farmers in particular -- will not be completely ignored. So here are three things that I hope to see discussed during the upcoming hearings:</p> <p>1.Congress saved $6 billion annually by allowing the subsidies for ethanol to expire at the end of 2011, but it is important to remain vigilant and beat back pressures for new subsidies for transportation and delivery infrastructure that would further lock us into yesterday's technology and even allow the market to expand further.</p> <p>2.Reform food aid and expand the administration's flexibility to use funds for local and regional purchase when appropriate. This would both save money and make U.S. food aid more effective and responsive.</p> <p>3.Ensure that cuts to commodity program subsidies are not diverted to more trade-distorting uses. Elimination of the $5 billion in "direct payments" that farmers receive annually, regardless of market prices, appears likely and adds up to50 billion over a 10-year budget window. During the budget super committee debate last year, the agricultural committees proposed $23 billion in cuts -- where's the other $27 billion going?</p> <p>I doubt anyone reading this blog doesn't care about the impact of U.S. policies on poor countries. But there are plenty of home-grown reasons to reform agricultural policies, including domestic equity concerns, as I noted during last summer's budget debate. On this issue, it is also worth taking a look at a new USDA report that documents how subsidies are increasingly going to larger and richer farm operations, with a quarter of payments going to those with household incomes above $200,000. I wonder if that will come up in the hearings.</p> <p>In addition to following the hearings, we'll also be closely following the broader process. There are reports of another attempt, similar to what was attempted with the super committee last fall, to ram something through quickly with little scrutiny. The budget situation offers opportunities to reform American farm policy to make it more efficient and equitable -- at home and abroad -- but only if the issues are debated fully and openly and with all the stakeholders represented. Stay tuned.</p>b2e1f289-6f3a-4c1a-abe0-5fa0f443a491http://www.tradeoutofpoverty.org/news/2012/01/26/cameron-urges-eu-to-look-beyond-dohaannabel@tradeoutofpoverty.orgDoha Development RoundDavid CameronWorld Economic ForumDAVOSDAVOCCameron urges EU to look beyond DohaPrime Minister David Cameron called the drive to finish the Doha round of world trade talks a failure and said on Thursday the European Union should instead negotiate free trade deals with the United States and Africa.
Thu, 26 Jan 2012 11:15:56 Z<p>Britain's Prime Minister David Cameron addresses the Parliamentary Assembly of the Council of Europe in Strasbourg January 25, 2012. </p> <p>LONDON (Reuters) - Prime Minister David Cameron called the drive to finish the Doha round of world trade talks a failure and said on Thursday the European Union should instead negotiate free trade deals with the United States and Africa.</p> <p>Cameron's comments, to be made in a speech at the World Economic Forum in Davos, mark a break with the orthodox position of most world leaders who have for years called for a final push to conclude the complex set of global trade negotiations launched in the Qatari capital Doha in 2001.</p> <p>Instead of trying to get every country to agree, Cameron said the 27-nation EU should push forward with bilateral deals. He suggested a "coalition of the willing" -- countries that wanted to do an ambitious trade deal -- could forge ahead alone.</p> <p>"Last year, at this very forum, world leaders called for an all-out effort to conclude the Doha round in 2011. We said it was the make-or-break year. It was. And we have to be frank about it. It didn't work," Cameron will say, according to excerpts of his speech released in advance by his office.</p> <p>"But let's not give up on free trade. Let's step forward with a new and ambitious set of ideas to take trade forwards."</p> <p>Cameron's impatience with the marathon Doha talks reflects his wish to give a boost to Britain and Europe's sagging economies that more trade could bring. He has been trying to spur British trade with powerful emerging markets.</p> <p>Official data released on Wednesday showed Britain's economy shrank by 0.2 percent in the last three months of 2011, complicating Cameron's hopes of boosting growth while slashing Britain's big budget deficit.</p> <p>ON LIFE SUPPORT</p> <p>The Doha talks were intended to help poor countries prosper through trade and boost the world economy by hundreds of billions of dollars. But trading powers clashed over proposals to cut tariffs and subsidies on goods from food to chemicals.</p> <p>Nevertheless, world trade ministers meeting in Geneva last month were not prepared to declare the talks dead.</p> <p>Cameron urged the EU to wrap up talks on free trade agreements with India, Canada and Singapore by the end of this year. "Completing these could add 90 billion euros (74 billion pounds) to EU gross domestic product," he will say.</p> <p>"Let's also look at options for agreement between the EU and the U.S., where a deal could have a bigger impact than all of the other agreements put together."</p> <p>Negotiating a U.S.-EU free trade agreement is a long-held British dream. The then EU Trade Commissioner Leon Brittan, now a trade adviser to Cameron, suggested a similar idea in 1998 but it was shot down by France which feared the EU could be forced into concessions on farm trade.</p> <p>Cameron said his proposals did not mean turning his back on international cooperation. "We need the continued work of the World Trade Organisation to prevent any collapse back to protectionism," he said.</p>a274524f-4320-4cc6-b152-8d903810589ehttp://www.tradeoutofpoverty.org/news/2011/10/10/agricultural-export-restrictions-spur-discussion-ahead-of-wto-ministerialannabel@tradeoutofpoverty.orgPascal LamyMinisterial ConferenceUN World Food ProgrammeWTODoha Development RoundAgricultural Export Restrictions Spur Discussion Ahead of WTO MinisterialAccording to trade sources, an unofficial 2 November deadline for finalising the agenda of the WTO’s December ministerial conference has caused quiet consultations on agricultural export restrictions to pick up the pace.
Mon, 10 Oct 2011 11:10:12 Z<p>An unofficial 2 November deadline for finalising the agenda of the WTO&rsquo;s December ministerial conference has caused quiet consultations on agricultural export restrictions to pick up the pace, trade sources say.</p> <p>A number of countries are interested in asking the WTO membership as a whole to exempt humanitarian food aid purchases made by the UN&rsquo;s World Food Programme (WFP) from agricultural export restrictions - the commitment made by agriculture ministers from the Group of 20 major economies at their Paris summit in June (see Bridges Weekly, 29 June 2011).</p> <p>However, the process is complicated by differences of opinion and approach within the WTO membership as a whole, and also within the G-20 (not to be confused with the coalition of developing countries at the WTO with the same name).</p> <p>In April of this year, the group of net food-importing developing countries (NFIDCs) tabled a more wide-reaching proposal on agricultural export restrictions as part of the Doha Round of trade talks at the WTO: this would effectively have exempted NFIDCs and least-developed countries from export prohibitions or restrictions imposed by other countries (see Bridges Weekly, 6 April 2011).</p> <p>Sources told Bridges that the group may still wish to see a more ambitious statement made by trade ministers when they meet in December.</p> <p>In contrast, other WTO members are believed to be reluctant to agree to language based on the G-20 agriculture ministers&rsquo; statement from June - including some developing country members of the G-20 itself. Countries such as Argentina and India have made use of such export restriction measures in recent years, while others, such as China, may be concerned about possible implications for other WTO issues, such as export restrictions on non-agricultural products (see Bridges Weekly, 7 September 2011).</p> <p>The action plan from the G-20&rsquo;s June summit stated that the signatories &ldquo;agree to remove food export restrictions or extraordinary taxes for food purchased for non-commercial humanitarian purposes by WFP and agree not to impose them in the future.&rdquo; The plan also stated that its sponsors would recommend &ldquo;consideration of the adoption of a specific resolution by the WTO for the Ministerial Conference in 2011.&rdquo;</p> <p>Delegates indicated that informal consultations were taking place to explore whether countries may be willing to adopt language based on the G-20&rsquo;s agreement at December&rsquo;s trade ministers gathering. An informal pre-existing &lsquo;gentleman&rsquo;s agreement&rsquo; specifying that agendas for ministerial gatherings should be finalised six weeks ahead of time adds new urgency to the discussions, sources said.</p> <p>Rule-making: some members query approach</p> <p >ome Geneva-based officials told Bridges that, while the G-20 statement itself was not problematic, they were uncomfortable with the precedent that a ministerial declaration on the subject could set for future rule-making at the global trade body.</p> <p>&ldquo;If it is adopted by trade ministers, it would become part of the trade rules that every country has to abide by,&rdquo; one delegate observed. &ldquo;People ask, &lsquo;is that the right way to make rules?&rsquo;&rdquo;</p> <p>Many developing country governments are still keen to conclude the stalled Doha Round of trade talks, the source said, and therefore are wary of anything that could distract from that goal. While the G-20 declaration was valuable as a political statement, members should avoid assuming that this means it would also serve as a useful legal basis for commitments at the WTO, the source added.</p> <p>Scepticism amongst importing countries</p> <p >However, another developing country official from an importing country told Bridges that these arguments had yet to convince him. &ldquo;A declaration could still guide a panel,&rdquo; the source said, arguing that the proposed measure could help poor countries in the event of a food shortage.</p> <p>Others questioned how countries could perceive the G-20 agreement as problematic in practical terms, given its narrow focus on humanitarian food aid. &ldquo;Only the poorest countries benefit from WFP aid,&rdquo; one delegate observed, pointing out that these countries largely lack the financial resources to pursue trade disputes at the WTO.</p> <p>In any case, because food aid is provided for emergency situations, the notoriously slow dispute settlement process would be particularly ill-adapted to resolving any problems countries might face, the source said.</p> <p>One delegate from a least-developed country underscored the importance of introducing effective disciplines on export restrictions. &ldquo;This is important for us,&rdquo; the official observed, who added that the poorest countries &ldquo;are the worst sufferers from any export ban.&rdquo;</p> <p>Committee on Agriculture: informal proposal</p> <p >In a separate move, Japan circulated an unofficial &lsquo;room document&rsquo; on agricultural export restrictions at last week&rsquo;s meeting of the Committee on Agriculture (see related story in this issue).</p> <p>The informal paper proposed clarifying terms such as &lsquo;net-food exporter&rsquo; and &lsquo;foodstuffs&rsquo; that feature in existing disciplines on agricultural export restrictions in the WTO Agreement on Agriculture.</p> <p>However, some participants at the meeting argued that the committee had no mandate to agree on the interpretation of legal terms, which they said was under the purview of the dispute settlement process. In comments after the event, other delegates said that the committee could still be a useful forum in which members could share and exchange their understanding of what existing commitments were intended to mean.</p> <p>December ministerial conference deadline looms</p> <p>Trade officials speculated that agricultural export restrictions could be one of a number of issues currently under consideration for the WTO&rsquo;s December ministerial conference. Others might include the accession of Russia to the WTO; a possible extension of the moratorium on &lsquo;non-violation complaints&rsquo; regarding the WTO&rsquo;s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS); and a similar extension to the moratorium on e-commerce customs duties.</p> <p>Delegates said that WTO Director-General Pascal Lamy &ldquo;would still run the process to get convergence on Doha,&rdquo; although members have already acknowledged that the round will not be concluded this year, amidst growing scepticism over its prospects for the future.</p> <p>A work programme for the WTO for next year should also &ldquo;be part of what Lamy&rsquo;s cooking at the moment,&rdquo; the official said. The Director-General is reportedly currently consulting with ambassadors ahead of the next meeting of the Trade Negotiations Committee, which the source said is scheduled for 21 October. &ldquo;By then, things should become much clearer,&rdquo; the source added.</p> <br />eca0a0e4-6d2d-4400-9dce-df5a56a7db45http://www.tradeoutofpoverty.org/news/2011/09/27/on-russia-wto-fraternity-ready-to-yieldannabel@tradeoutofpoverty.orgPutinHerman Van RompuyJose Manuel BarrosoBRICSWTOOn Russia, WTO fraternity ready to yieldRarely has the recruitment of a new member taken as long as Russia's initiation into the World Trade Organization, but perceived economic gains and looming Russian elections make the case for Russia joining irresistible.
Tue, 27 Sep 2011 11:44:22 Z<p>The European Union is the main trade heavyweight still hesitant about admitting Russia into the WTO 18 years after negotiations began, but qualms about Russian auto sector policy are competing with a stronger wish to usher Russia in before Prime Minister Vladimir Putin, a WTO-sceptic, returns to the presidency in elections next March.</p> <p>Russia itself, while refusing to abandon industrial interests in the car sector, this month said it is only an EU approval away from membership.</p> <p>Russia's $1.5 trillion (965 billion pounds) economy is the largest still remaining outside the league of trading nations and the World Bank estimates WTO membership will allow its gross domestic product to grow by as much as 3.3 percent in the medium term and 11 percent in the long term, particularly by attracting more foreign investment.</p> <p>"Reliance on oil wealth cannot sustain growth in economy," said Chris Weafer, chief strategist at Moscow brokerage Troika Dialog. "Putin will establish a very pro-business and pro-reform cabinet. Membership of WTO is a priority."</p> <p>Russian growth forecasts are compelling when the BRICS countries of emerging economies (<a href="http://uk.reuters.com/places/brazil" title="Full coverage of Brazil">Brazil</a>, Russia, India, China and South Africa) and their rising fortunes represent one glimmer of hope amid a deepening global economic crisis.</p> <p>The car sector is predicted to be a concentration point of growth outweighing the cost of Russian demands on investors: automakers widely expect sales of cars, vans and trucks in Russia to double to 4.1 million vehicles by 2020, from approximately 2 million today, making Russia the largest market in Europe, overtaking <a href="http://uk.reuters.com/places/germany" title="Full coverage of Germany">Germany</a>.</p> <p>GM, Fiat (<a href="http://uk.reuters.com/business/quotes/overview?symbol=FIA.MI">FIA.MI</a>), Ford (<a href="http://uk.reuters.com/business/quotes/overview?symbol=F.N">F.N</a>), Renault (<a href="http://uk.reuters.com/business/quotes/overview?symbol=RENA.PA">RENA.PA</a>) and Volkswagen (<a href="http://uk.reuters.com/business/quotes/overview?symbol=VOWG_p.DE">VOWG_p.DE</a>) plan to invest $5 billion in Russia to set up production, in exchange for duty breaks on imported components. They hope to cash in on low Russian labour costs and create export platforms for growing markets across Asia.</p> <p>FACE-SAVING EXERCISE</p> <p>A new member of the size and calibre of Russia is just the sort of face-saving exercise that the WTO desperately needs. Collapsed hopes for the Doha round of trade talks that began ten years ago are casting doubt over its credibility.</p> <p>Initiating Russia into their midst is the one thing that could turn a meeting of trade ministers in Geneva this December from a wake for Doha into a vindication for the WTO.</p> <p>An impressive chorus has been egging Russia on in the last years of its bid: the G20 group of developing nations, G8 group of rich nations, World Bank, the U.S. administration and the WTO itself have all lined up to push Russia through before the Russian elections create new obstacles.</p> <p>That said, Russian accession talks have been fraught. Observers talk of the unpredictable nature of these talks, which make the recruitment of <a href="http://uk.reuters.com/places/china" title="Full coverage of China">China</a> into the trading body ten years ago seem relatively simple.</p> <p>One example of this came last year, when weeks after EU President Herman Van Rompuy and EU Commission President Jose Manuel Barroso announced their green light for Russia, Moscow launched new industrial policy that has renewed EU opposition and delayed its membership.</p> <p>Specifically, Decree 166 -- as Moscow named it -- offers carmakers operating in Russia incentives as long as they abide by the following requirements: they must produce more than 300,000 cars and 30,000 trucks per year, create a majority of a car's total value locally, and open research and development centres in Russia among other things.</p> <p>The scheme divided non-Russian carmakers, depending on the quality of the deals they had with Russia before it launched.</p> <p>"Russia's argument is, if we do away with all our protection of all our industrial sector, the knock-on effect is going to be so big that lots of companies are not going to survive," said Fredrik Erixon, Director of the Brussels-based European Centre for International Political Economy.</p> <p>The U.S. Trade Representative's office said it was monitoring talks over Decree 166, though under WTO rules the U.S. agreement with Moscow will become public only after accession.</p> <p>DECREE 166</p> <p>Top Russian officials from Putin to economic advisors have said Russia will keep in place Decree 166 until at least 2018, even though these are illegal in the eyes of the WTO.</p> <p>Russia has also yet to remove restrictions on meat imports, timber exports among others, though these are smaller issues, trade officials say.</p> <p>"If it's not so easy (negotiating trade issues with) the Chinese, it's not easier with the Russians," EU Trade Commissioner Karel De Gucht said this week.</p> <p>Diplomats familiar with the talks cite EU fears that the minimum production requirements may turn Russia into an exporter competing with Europe, and that jobs will migrate eastwards.</p> <p>Nonetheless, Europe's powerful business community says it's better to yield in the short term in order to better hold Russia to account in the long term with the WTO's house rules and the combined pressure of its 153-strong membership.</p> <p>"As long as Russia is outside the WTO, there is little Europe can do in terms of trade counter protectionist measures," said Adrian van Den Hoven, director for international affairs at BusinessEurope, Europe's largest employers' group.</p> <p>"There will always be EU.L countries that are afraid that Russia will retaliate."</p>d0014e0a-64ac-4557-a3e1-c526c919569bhttp://www.tradeoutofpoverty.org/news/2011/09/13/u-s-urges-wto-members-agree-doha-round-deadlocked-annabel@tradeoutofpoverty.orgDeveloping CountriesIsi SiddiquiDoha roundWTOMichael PunkeU.S. urges WTO members agree Doha round "deadlocked"World Trade Organization (WTO) members should acknowledge the 10-year-old Doha round of trade talks is "deadlocked" and begin charting a more "credible path forward," a top U.S. trade official said on Monday.
Tue, 13 Sep 2011 13:45:15 Z<p>"One thing is clear: What we are doing today in the Doha negotiations is not working. That is not a value statement, but a simple assessment of the facts. After 10 years, we're deadlocked," U.S. Ambassador to the WTO Michael Punke said at a hearing on his renomination to his current job.</p> <p>The Doha round was launched in late 2001 with the goal of helping poor countries prosper through trade.</p> <p>But members have disagreed over how much rich countries should cut farm subsidies and tariffs on farm and manufactured goods in exchange for developing countries opening their own markets in agriculture, manufacturing and services.</p> <p>"The first thing that is really critical is that all members of the WTO admit right now that what we're doing isn't working," Punke told the panel.</p> <p>The main point of disagreement is over how much major developing countries should open their markets, he said without referring to China, India and Brazil by name.</p> <p>The United States believes that these major emerging economies should make more generous offers that reflect their tremendous growth in exports over the past decade, Punke said.</p> <p>Punke told the panel he believed "no deal is better than a bad deal," but some who accuse the United States of lack of leadership in the Doha round hold the opposite view, that a bad deal is better than none.</p> <p>WTO'S FUTURE</p> <p>Talks between now and the WTO's biennial ministerial meeting in December provide a good opportunity to consider the future for the WTO, he added.</p> <p>One way to improve chances of a deal would be get away from the current "lowest common denominator" approach, in which countries most reluctant to open their markets dictate the terms on which the talks take place, Punke said.</p> <p>The United States would favor an approach allowing more ambitious countries to set the pace, he said.</p> <p>Meanwhile, Chief U.S. Agriculture Negotiator Isi Siddiqui told the panel that talks on Russia's longtime bid to join the WTO were at a "very sensitive stage."</p> <p>The U.S. is pushing in those talks for better market access for its meat products like beef, pork and poultry.</p> <p>It also is pressing Russia on its domestic agriculture support programs and wants Moscow to pledge to abide by WTO food, animal and plant safety rules when deciding whether to block imports of a particular product, Siddiqui said.</p> <p>U.S. and EU leaders have expressed hope that Russia will finish its bid to join the WTO by December, but talks with Moscow have already dragged on for years.</p> <p>Both Punke and Siddiqui are serving under temporary appointments and have to be confirmed by the Senate to continue in their posts beyond the end of the year.</p>a5e7ece5-0e12-4453-ba51-54b237837fe1http://www.tradeoutofpoverty.org/news/2011/06/20/us-africa-push-for-agoa-extension-at-tenth-annual-forumannabel@tradeoutofpoverty.orgintra-African tradeHillary ClintonAfricaGeneralized System of PreferencesUS congressAGOAtradeUS, Africa Push for AGOA Extension at Tenth Annual Forum<p><span style="color: #000000;">This year&rsquo;s annual forum on the African Growth and Opportunity Act (AGOA) saw United States and African ministers and officials express an overall satisfaction with the current state of the US-Africa trade relationship under the bill. Officials on both sides are pushing for the US Congress to renew the bill prior to its expiration on 30 September 2015.</span></p> <p><span style="color: #000000;">Hosted in Lusaka, Zambia from 9 to 10 June, this gathering marked the tenth meeting since the law&rsquo;s May 2000 inception. This year&rsquo;s forum theme was &ldquo;Enhanced Trade Through Increased Competitiveness, Value Addition and Deeper Regional Integration.&rdquo;</span></p> <p><span style="color: #000000;">Many African countries already benefit from duty-free entry for some of their products under the US&rsquo;s Generalized System of Preferences. However, AGOA expands upon that list of products for those sub-Saharan countries that meet the law&rsquo;s eligibility criteria. While countries must be GSP-eligible to qualify for AGOA, achieving the former does not guarantee the latter.</span></p> <p><span style="color: #000000;">According to the Office of the US Trade Representative (USTR), general GSP covers approximately 4,600 products; under AGOA, that number expands to over 6,400. The USTR estimates that that number accounts for over ninety-eight percent of the products that AGOA countries export to the US.</span></p> <p><span style="color: #000000;">Thirty-seven sub-Saharan countries currently benefit under AGOA, with the Democratic Republic of Congo having recently lost its eligibility; the Obama Administration announced the decision in a </span><a href="http://www.whitehouse.gov/the-press-office/2010/12/21/presidential-proclamation-african-growth-and-opportunity-act"><span style="color: #000000;">presidential proclamation</span></a><span style="color: #000000;"> in December, which took effect on 1 January.</span></p> <p><span style="color: #000000;"><strong>Room for improvement, despite trade gains</strong> </span></p> <p><span style="color: #000000;">While Zambian President Rupiah Banda nodded briefly toward the painful effects that the financial crisis had on Africa, including delays in development aid pledges, overall he was optimistic about future prospects for the continent.</span></p> <p><span style="color: #000000;">In his opening remarks, Banda hailed the gains that the US-Africa agreement had brought AGOA&rsquo;s beneficiaries, noting that &ldquo;it is on record that more than 300,000 jobs have been created in Africa with US$300 billion in export earnings and nearly US$30 billion in non-oil exports to Africa at minimal cost to the United States taxpayers.&rdquo;</span></p> <p><span style="color: #000000;">US Trade Representative Ron Kirk expressed similar optimism, noting that last year&rsquo;s non-oil imports under AGOA showed an 18 percent increase from 2009, up to US$4 billion in 2010 alone.</span></p> <p><span style="color: #000000;">Despite his positive tone, Banda emphasised that there remains room for improvement, such as shifting AGOA&rsquo;s focus toward engaging in skills and knowledge transfer, and the need for a stronger push toward getting more agricultural products on US shelves.</span></p> <p><span style="color: #000000;">Speaking on Washington&rsquo;s behalf, Kirk agreed that AGOA could be better, and that improved market access was not the only tool for doing so. &ldquo;All of us - US and African, governments, farmers, and business - must work closely to make AGOA better, to fulfil its yet unfulfilled promise and potential. We must get it right and aim to have the impact we&rsquo;ve always known possible in AGOA&rsquo;s second decade,&rdquo; he said in his </span><a href="http://www.ustr.gov/about-us/press-office/speeches/transcripts/2011/june/remarks-united-states-trade-representative-ron"><span style="color: #000000;">opening remarks</span></a></p> <p><span style="color: #000000;">Kirk was joined by US Secretary of State Hillary Clinton in leading the American delegation to the AGOA Forum. Both made clear that the US would continue to support of the programme: Kirk, in his remarks, stated that &ldquo;the United States is committed to promoting Africa&rsquo;s economic growth through trade, and AGOA is a critical pillar in growing the US economic relationship with sub-Saharan nations.&rdquo;</span></p> <p><span style="color: #000000;">Clinton, who gave </span><a href="http://www.state.gov/secretary/rm/2011/06/165924.htm"><span style="color: #000000;">closing remarks</span></a><span style="color: #000000;"> at the Forum, reminded participants that the road toward obtaining US Congress&rsquo; renewal of AGOA would not be easy. She suggested that issues such as fighting corruption, improving regional integration, and accountability for results were all likely to come up in Washington discussions: &ldquo;they will be asking tough questions like these, and I want us to be ready with answers.&rdquo;</span></p> <p><span style="color: #000000;">Clinton also noted that intra-African trade was far behind intra-regional trade anywhere else in the world. While she attributed part of that problem to infrastructure, she also pinned some of the blame on the pressure that trade officials face to protect domestic industries: &ldquo;Government leaders of smaller countries are concerned that larger countries will gain too much influence. Business owners worry about losing out to competitors across the border.&rdquo;</span></p> <p><span style="color: #000000;">Despite the concerns Clinton mentioned, Kirk affirmed that the Obama Administration is committed toward pursuing Congressional renewal of AGOA beyond 2015, as doing so would &ldquo;provide the predictability needed for US and African businesses, entrepreneurs, buyers, and investors.&rdquo;</span></p> <p><span style="color: #000000;">In a nod to Sudan&rsquo;s January referendum that allowed the southern part of the country to secede, Kirk mentioned that he hopes Congress will add South Sudan to AGOA eligible list, once the new country is officially independent and has met the necessary inclusion criteria. South Sudan is due to gain its independence in three weeks, despite a recent surge of violence in the area.</span></p> <p><span style="color: #000000;">Demonstrating further the US&rsquo; commitment to trade with sub-Saharan Africa, Kirk </span><a href="http://www.ustr.gov/about-us/press-office/press-releases/2011/june/ustr-kirk-announces-120-million-initiative-build-trad"><span style="color: #000000;">announced</span></a><span style="color: #000000;"> the African Competitiveness and Trade Expansion (ACTE) initiative - a programme that would devote US$120 million over four years toward the US Agency for International Development&rsquo;s regional competitiveness hubs. The goal of this funding would be &ldquo;to improve Africa&rsquo;s capacity to produce and export competitive, value-added products and to address supply-side constraints that impede African trade,&rdquo; Kirk said in a statement.</span></p> <p><span style="color: #000000;">Kirk added that these hubs, which are in Bostwana, Ghana, Kenya, and Senegal, &ldquo;help make African producers more competitive by tackling cross-cutting problems in finance, transport, governance, business environment, and telecommunications.&rdquo;</span></p> <p><span style="color: #000000;">Clinton, in an </span><a href="http://www.state.gov/secretary/rm/2011/06/165941.htm"><span style="color: #000000;">interview</span></a><span style="color: #000000;"> for public affairs show Africa360, highlighted the governance objectives of AGOA. Under the legislation, the US President must annually re-evaluate the eligibility of sub-Saharan countries for AGOA benefits. The criteria used for obtaining this eligibility include anti-corruption efforts, rule of law, protection of labour rights, poverty reduction measures, and having a market-based economy. In short, investments are conditional on meeting governance standards.</span></p> <p><span style="color: #000000;">When questioned on the US&rsquo; stricter standards Clinton explained that the definition of good governance has become more nuanced over the last couple of decades; she clarified that the US&rsquo; goal is for investments in Africa to be sustainable, without &ldquo;undermin[ing] good governance.&rdquo;</span></p> <p><span style="color: #000000;">ICTSD reporting; &ldquo;Obama calls for ceasefire in Sudan,&rdquo; AGENCE FRANCE-PRESSE, 15 June 2011.</span></p> <p><span style="color: #000000;">&nbsp;</span></p>Mon, 20 Jun 2011 15:45:31 Z